Andhra Bank personal loan is offered with zero foreclosure charges and competitive interest rates based on the external benchmark called the RBI repo rate. Being part of the repo linked lending rate (RLLR) regime, the transmission of rate cuts/increases is expected to be transmitted faster to personal loan borrowers of Andhra Bank. In the following sections, details of personal loans from Andhra Bank will be discussed.
Features of Andhra Bank Personal Loan
Minimal Documentation: Andhra Bank personal loan can be availed with need for minimum number of documents. Generally a proof of identity, a proof of address and a proof of income are sufficient to apply for a personal loan.
Diversity: Andhra Bank offers personal loan to cater financial needs of different groups of people, ranging from salaried individuals to self-employed applicants, professionals, LIC agents and pensioners.
Flexible Loan Tenure: You can repay the loan amount as per your convenience in up to 60 months.
Floating Rate of Interest: Andhra Bank personal loan interest rate is linked to repo rate and interest is calculated using the reducing balance method. This effectively lowers the total interest payout, which makes the Andhra personal loan offer more lucrative for borrowers.
Andhra Bank Personal Loan Interest Rates
The following are the personal loan interest rates as offered by Andhra Bank:
|Type of Personal Loan||Rate of Interest (p.a.)|
|Clean Loan||11.20% onwards|
|Consumer Durables Loan||11.70% onwards|
|Secured Personal Loans (against KVP, NSC, LIC Policy)||13.15% onwards|
Types of Andhra Bank Personal Loan
Andhra Bank offers 3 types of personal loans:
1. Andhra Bank Clean Loan
- What is it? – Unsecured loan offered to individuals to meet their credit requirement for personal purposes.
- Who is eligible? – Offered to salaried individuals, non-salaried individuals, pensioners and LIC agents.
- Loan Amount – Variable as per individual applicant’s profile.
|For Salaried Individuals||Loan amount after considering all deductions including EMI of the proposed loan should be at least 40% of the gross salary.|
|For Non-Salaried Individuals||Up to 2 times of average annual proven income*|
(maximum loan amount of Rs. 5 lakh)
|Up to 8 times of the monthly pension.|
|For LIC Agents|
(maximum loan amount of Rs. 2 lakh)
|l Liable to file ITR: Up to 2 times of average renewal commission for the last 3 years.|
l Not liable to file ITR: Up to 50% of average renewal commission as per the statement of income.
*Calculated as average of last 3 years annual income shown in IT returns or assessment orders.
- Loan Tenure – Loan can be paid over a maximum period of 60 months (5 years)
- Co-obligation – Requires an acceptable third party as a co-borrower.
- Collateral Security – No collateral needs to be pledged to avail this loan.
- Interest rate varies based on loan tenure and applicant type as follows:
Rate of Interest
|State and Central Government Employees, Employees of public sector undertakings with Andhra Bank salary accounts and Pensioners||Others|
|Up to 36 months|
|RLLR + 3.00%||RLLR + 3.50%|
|More than 36 months to 60 months||RLLR + 3.25%||RLLR + 4.50%|
RLLR: Repo Linked Lending Rate
2. Andhra Bank Consumer Loan
- What? – Loan offered for purchase of consumer durables and home appliances
- Who? – Any individual with repayment capacity, including salaried individuals, pensioners and others.
- Loan Amount – 75% of the cost of the article or as per the following table, whichever is lesser.
|For Salaried Individuals||Up to 10 month gross salary|
|For Non-Salaried Individuals||Up to 40% of gross annual income|
|For Pensioners||Up to 4 months’ pension|
- Loan Tenure – Up to 60 months (5 years)
- Co-obligation – Husband/ father or any third party with a regular and sufficient source of income acceptable to the bank.
- Security – Article purchased with the loan amount can be hypothecated, i.e.,can be seized if you fail to repay the loan amount.
- Collateral Security – Life insurance policy with an equivalent surrender value or shares/ NSCs/ Units of sufficient value.
- Interest rate for the consumer loan from Andhra Bank are as follows:
Rate of Interest
|State and Central Government Employees, Employees of public sector undertakings with Andhra Bank salary accounts and Pensioners||Private Employees, non-salaried class, LIC agents and others|
|Up to 36 months|
|RLLR + 4.40%||RLLR + 3.50%|
|More than 36 months to 60 months||RLLR + 5.40% + 0.25%||RLLR + 5.40% + 0.25%|
RLLR: Repo Linked Lending Rate
3. Andhra Bank Loan against NSC/KVP/LIC Policy
- What? – Secured personal loan to meet any personal credit requirement.
- Who? – Individuals with appropriate security instruments.
- Loan Amount – Up to Rs. 50,000 without a third party guarantee and above Rs. 50,000 with a third party guarantee.
- Types of Securities Accepted – National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Life insurance policies or any other security as specified by the bank.
- Restrictions – NSCs and KVPs issued by far off post offices, Indira Vikas Patra (IVP), and life insurance policies in the name of the third party are not accepted as a security to avail the loan.
- Margin – Please note that the bank maintains a margin of 25% over the value of the security (including the interest) before sanctioning the loan amount. For example, if your NSC is worth Rs. 1 lakh, the bank will maintain a margin of 25% and approve a loan up to Rs. 75,000 only.
- Loan Tenure – Up to 60 months (5 years).
- Interest rates for this Andhra Bank personal loan are as follows:
|Loan Tenure||Rate of Interest|
|Up to 36 months||RLLR + 4.95%|
|More than 36 months to 60 months||RLLR + 4.95% + 0.25%|
RLLR: Repo Linked Lending Rate
The following are the key eligibility criteria applicable to different types of Andhra Bank personal loan:
1. Andhra Bank Clean Loan
|Age||l Up to 75 years for pensioners|
l Up to 55 years for LIC agents
|Co-obligation||l A third party acceptable to the bank.|
l Family pensioner or a nominee, in case of pensioners.
l One of the family members or spouse and 1 LIC agent, in case of an LIC agent
2. Andhra Bank Consumer Loan
|Who?||Any individual with repayment ability including salaried individuals, pensioners and others.|
|Co-obligation||Husband or father or any other Andhra Bank approved third party with a sufficient and regular source of income|
3. Andhra Bank Secured Loan
|Collateral||Life insurance policy/ shares/ NSCs/ Units of sufficient value|
Documents Required for Loan Application
- Duly filled Andhra Bank personal loan application form
- Photographs of the applicant and the co-applicant
- Proof of income of the applicant and the co-applicant
- Post-dated cheques (PDCs) for a minimum period of 12 months/ECS Mandate
- Bank account statement for last 6 months
Additional Documents Required for Consumer Loan
- Latest original quotation from a local dealer for consumer durables proposed to be purchased with full details of the article.
- Stamped receipt or invoice of the item purchased.
Additional Documents Required for Loan Against NSC/KVP/ LIC Policy
- Loan against NSC/KVP: Original bond along with request letter to Post Office for using the security in favour of bank.
- Loan against LIC policy: Original bond with a copy of latest receipt towards payment of premium along with request letter to LIC for assignment of the policy in favour of bank.
How to Apply for Andhra Bank Personal Loan with Paisabazaar?
You can apply for Andhra Bank personal loan with Paisabazaar platform without the hassle of visiting individual bank websites. The platform allows you to compare and choose the most suitable loan offer.
Step 1: Provide your personal details, such as occupation type, monthly income and the desired loan amount in the form given at the top of this page and click proceed.
Step 2: Provide your company details, PAN and work experience in the subsequent form and click “Proceed”.
Step 3: A list of personal loan offers will be displayed as per the chances of approval. Select the personal loan offer that best suits your need.
Step 4: Get your loan application conditionally e-approved instantaneously by submitting your application on the Paisabazaar platform.
Personal Loan Application Verification Process
Once you submit your personal loan application form, the lender starts the verification process to evaluate your profile. This verification process generally involves the following steps:
Step 1: You submit your loan application to the lender on Paisabazaar.com. A lender representative calls you to verify application details and to schedule a document pick-up
Step 2: After pickup of documents, the document verification process is initiated by the prospective lender.
Step 4: Lender approves the loan application upon successful document verification.
Step 5: You sign the loan agreement and the lender disburses the loan amount.
Check Andhra Bank Personal Loan Application Status
Step 1: Visit the Andhra Bank Loan Application Tracking Portal.
Step 2: Enter your loan application reference number, security code and click “Check Status”.
Fees and Other Charges
|Processing Fee||Nominal as per the guidelines in force|
|Administrative Charges||Collected at the end of every quarter as per the bank’s guidelines|
|Part Prepayment Charges||Nil*|
*For Loan Against NSCs, KVPs and LIC Policies, prepayment charges may apply.
How to Login on Andhra Bank Portal?
For First Time Users
Step 1: Visit Andhra Bank internet banking portal.
Step 2: Click “Register for Internet Banking”. The following web page will appear.
Step 3: Enter your customer ID, the required access type and the verification code. Moreover, select the checkboxes if your mobile number is registered with the bank and you have a valid ATM card of Andhra Bank.
Step 4: Lastly, click “Continue” to register yourself at the internet banking portal of Andhra Bank.
For Existing Users
Step 1: Visit the Andhra Bank internet banking portal.
Step 2: Enter your user ID, password, verification code and language to login the Andhra Bank portal.
Andhra Bank Personal Loan Statement
You can access the statement of personal loan from Andhra Bank in the following ways:
- By contacting the bank’s customer care department.
- Check your loan account statement on the Andhra Bank internet banking portal.
- Make an in-person visit at a nearby branch of Andhra Bank.
Andhra Bank Personal Loan EMI Calculation
The following is a calculation of equated monthly installment (EMI) for various types of Andhra Bank personal loan amount, interest rate and tenure:
|Loan Amount (Rs.) and Interest Rate|
Monthly EMI Payout (Rs.)
|1-year loan tenure||2-year loan tenure||3-year loan tenure||4-year loan tenure||5-year loan tenure|
|3 lakh @ 12% p.a.||26,654||14,122||9,964||7,900||6,673|
|4 lakh @ 14% p.a.||35,914||19,205||13,671||10,930||9,307|
|5 lakh @ 15% p.a.||45,129||24,243||17,332||13,915||11,894|
Comparison of Andhra Bank PL vs. Other Lenders
|Andhra Bank||Axis Bank||Citibank||ICICI Bank||State Bank of India|
|Interest Rate||11.20% onwards||12-24%||10.50% onwards||11.25-22.00%||10.50% onwards|
|12 to 60 months||12 to 60 months||12 to 60 months||12 to 60 months||12 to 72 months|
|Processing Fees||As per individual applicant profile||Up to 2% of loan amount sanctioned||Up to 3% of loan amount sanctioned||Up to 2.25% of loan amount sanctioned||Up to 1% of loan amount sanctioned|
|Foreclosure Charges||Nil||Nil||Up to 5% of principal prepaid||Up to 5% of principal prepaid||Up to 3% of principal prepaid|
Andhra Bank Customer Care
The following are the different ways to reach the customer care department of Andhra Bank:
- Toll Free Number: 1800-425-1515
- Telephone Number: 040-23234313, 23252000; Extensions: 2422, 2577
- Fax: 23232419
- E-mail ID: email@example.com
- Digital Assistant (Chatbot): You may contact Andhra Bank’s digital assistant called “ABHi” to seek an instantaneous answer to your queries.
NOTE: The customer care numbers are operational between 10:00 AM to 5:00 PM on all working days, except 2nd and 4th Saturdays.
The following are different ways that you can register a complaint with Andhra Bank customer care:
- SMS: Send an SMS “UPSET” to 9666606060. You will instantaneously receive an acknowledgement after sending this SMS, subsequent to which you will receive a call from the Andhra Bank Call Centre. The concerned branch/office will then take the necessary steps to resolve your complaint.
- Proforma of Complaint: Alternatively, you can fill the online complaint form and submit it to the concerned branch.
- If you are not satisfied with the branch reply, contact Andhra bank nodal officer via filling out the customer complaint form.
- If you are still not satisfied after receiving the Nodal Officer’s response, contact the Head Office of Andhra Bank at the following address:
The Assistant General Manager
Andhra Bank, Customer Service Department,
Head Office, Dr. Pattabhi Bhavan,
Hyderabad – 500004
Phone: 040 23297899
Benefits of Applying for a Personal Loan at Paisabazaar
- Paisabazaar platform displays multiple loan offers that you are eligible for on a single platform. This not only saves you from the hassle of visiting individual bank websites, but also facilitates comparison of the various offers to make a more informed decision.
- You can know the eligible loan amount even before applying for the loan through our platform.
- Know the chances of loan approval based on our algorithm called SmartMatch.
- You can plan your finances by calculating the monthly EMI payouts beforehand using Paisabazaar EMI calculator. You just need to provide the loan amount, tenure and interest rate to know the EMI payable.
- Get instant conditional e-approval from the lender through our platform.
- All your details submitted with Paisabazaar.com will be safe as we are ISO 27001:2013
You should keep the following points in mind before applying for a personal loan:
- Eligibility Criteria: Check the eligibility criteria carefully and ensure that you meet them.
- Documentation: Make sure that you have all the required documents to avail the personal loan.
- Multiple Loan Applications: Do not make multiple loan applications simultaneously as this may lead to multiple hard enquiries of your credit report. This can severely affect your credit score, and hence decrease the chances of loan approval.
- Credit Utilization Ratio: This refers to the ratio between the amount of credit utilized and the amount of credit available. Make sure you maintain a low credit utilization ratio to increase the chances of loan approval.
Frequently Asked Questions (FAQs)
Q1. What is the turn-around-time for Andhra Bank personal loan disbursal?
While Andhra Bank has not specified the exact time for personal loan disbursal, the loan approval process is typically completed within 4 to 7 working days post the submission of the required documents. The actual disbursal may occur earlier or later depending on various factors such as loan amount, applicant type, loan tenure, etc.
Q2. What are the various types of Andhra Bank personal loan?
Following are the three types of personal loan offered by Andhra Bank:
- Andhra Bank Clean Loan: Unsecured loan offered to individuals to meet their personal needs.
- Andhra Bank Consumer Loan: Secured personal loan offered to individuals to purchase consumer durables and home appliances.
- Andhra Bank Loan against NSCs, KVPs and LIC Policies: Secured personal loan that uses instruments such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP) or LIC policy offered to individuals to meet their personal needs.
Q3. Does Andhra Bank offer pre-approved personal loan?
Andhra Bank may offer pre-approved loan to some of its existing customers based on their relationship with the bank and credit history.
Q4. What is RLLR?
RLLR stands for Repo Linked Lending Rate, i.e, the interest rate charged on a loan is linked to repo rate. Whenever there is an increase or decrease in repo rate, there is a similar change in the interest rate charged by bank. Hence, RLLR allows greater transparency and faster reflection of rate cuts in the interest rates.
Q5. How can I calculate my EMI for Andhra Bank personal loan?
You can calculate Andhra Bank personal loan EMI for free using Paisabazaar EMI calculator. Use the sliders to specify your loan amount, loan tenure and interest rate to know the monthly EMI payouts.
Q6. How Andhra Bank charges interest on personal loan?
Andhra Bank personal loan interest rate is floating in nature as it is based on repo rate, an external benchmark. Moreover, the interest is charged on reducing balance which significantly reduces the interest component.
Q7. Can I prepay my Andhra Bank personal loan?
Yes, you can prepay Andhra Bank personal loan before the designated due date. This not only helps you to save on the interest component, but also reduces your outstanding debt. Currently Andhra Bank’s personal loan prepayment charges are nil.
Q8. How can I pay Andhra Bank personal loan EMIs?
You can pay Andhra Bank personal loan EMIs at any of the bank branches. Alternatively, you can give standing instructions to deduct the same form your savings account.
Q9. What are the foreclosure charges for Andhra Bank personal loan?
While the foreclosure charges for Andhra Bank Clean Loan and Consumer Loan are nil, nominal charges may apply for foreclosure of loan against NSCs, KVPs and LIC policies.
Q10. Can a pensioner avail Andhra Bank personal loan?
Yes, a pensioner can avail Andhra Bank personal loan, provided they meet the personal loan eligibility criteria as set by Andhra Bank.